OnDeck passes US$9 billion benchmark globally in online lending
Australian FinTech adoption outpacing most global markets; sector reaching maturity faster than US experience Development of quality online lending industry key to growing Australia’s small business sector; closing credit gap The OnDeck Group, representing the subsidiaries of the US-listed OnDeck Capital Inc., has announced that it has lent more than US$9 billion to more than 80,000 small business customers in just over ten years of lending. This figure includes the Group’s businesses in the US, Canada and Australia. Comparatively, the Australian market is estimated to reach over A$2 billion in annual originations by 2020. According to Mr Cameron Poolman, Chief Executive Officer OnDeck Australia, while Australia has been a relatively […]
Here’s how innovation has transformed banking and lending
The effects of technology and the disruptions technology make, manifests itself in clearly perceivable ways. This is very evident in many sectors – in a short span (just eighteen months after its release) Google Maps had knocked out GPS navigation device makers and Amazon and Taobao (Alibaba) have disrupted how consumers shop for goods by moving them to online from offline (O2O). Enterprises are worried about being Uber-ed or Airbnb-ed as new age companies are challenging traditional ways of doing business. Banking and Lending space have also gone through an amazing level of rapid innovation and disruption starting at the turn on the new millennium. Traditional banking monoliths can no […]
Keeping up with the customer in the digital age
Demanding customers, increasing regulation and clunky IT systems are proving serious speed bumps for Australian companies who want to grow in the digital age. Lending is facing a particularly sensitive atmosphere because of the banking royal commission, with many disruptors investing heavily in “regtech” – technology that simplifies compliance. These were some of the views aired by participants at a recent business roundtable event hosted by Fairfax Media and KPMG Enterprise which discussed Australia’s digital transformation. Anthony Baum, the CEO of Tic:Toc, which provides home loans that can be fully approved within 22 minutes, says technology is “way better” than traditional manual loan approval methods. “40 per cent of people […]
Zip targeting $1b of sales and 1m customers
More than half a billion dollars of sales went through credit card disrupter Zip Co’s payment system over the latest financial year, more than twice the volume of the previous year but only a quarter of that spent on competitor Afterpay. But as the popularity of “buy now, pay later” offerings continues to surge among Millennial shoppers, Zip – of which Westpac Banking Corp owns 17 per cent – is targeting $1 billion of sales over the coming year. “We are only just beginning and are well positioned for a bumper 2019 financial year,” said CEO Larry Diamond. Zip announced a $1.2 million loss at the cash earnings level for […]
Crowd2Fund reduces default rate using AI
Artificial Intelligence (AI) has helped peer-to-peer platform Crowd2Fund improve its loan recovery rate, according to newly-released figures. Crowd2Fund has seen its default rate drop from 1.42 per cent in June to just 1.04 per cent in July after implementing the AI software from Australian fintech firm InDebted. “It is an amazing piece of technology and completely revolutionises debt recovery,” said Chris Hancock, chief executive of Crowd2Fund. “There is always a great need to competently manage all loans on our platform to ensure that businesses are upholding their obligations to the investors. “This software has allowed us to improve our already stringent recoveries process, and we have seen more timely repayments […]
A dive into the US mortgage market could be a Credible move for this ASX fintech
Its latest earnings may have fallen short, but student loan comparison site Credible Labs still has fans as it pushes hard to ramp up its new mortgage loan business. Credible (ASX:CRD) — founded in San Francisco five years ago by Australian investment banker Stephen Dash — hit the ASX late last year, issuing shares at $1.21. Of the $50 million raised through its IPO, $15 million was taken out by the company’s original backers. The bulk of the money, some $31 million, was earmarked to spend developing its platform which targets US consumers. Even though its existing business is centred on student loan refinancing, investors are much more interested in […]
Wisr appointed to leading aggregator Connective broker panel
Neo-lender Wisr (ASX: WZR) has significantly expanded one of its personal loan origination channels after the company was appointed to the panel of Connective, Australia’s leading mortgage broker aggregator. Almost 3,000 brokers on the Connective platform will be able to introduce personal loans to Wisr from 1 August 2018. More than 20% of brokers in Australia aggregate through Connective, which had more than $41.5 billion in settled loans in FY2017. This addition to a key channel follows Wisr’s previously reported record growth rate in loan originations, with total loan origination value in H2FY18 rising by 136% on the previous six months. Today’s announcement means that, in conjunction with other key […]
OnDeck Australia secures $75m Credit Suisse loan
Small business lender OnDeck Australia has secured a $75 million funding line from Credit Suisse, the latest partnership between fintech players and established institutions. The subsidiary of the New York-listed OnDeck Capital said the asset-backed revolving credit facility would be used to refinance OnDeck Australia’s loan book and to fund new loans. The facility is due to mature in June 2020. On Deck Australia managing director Cameron Poolman said the lender was striving to lower its cost of funding, origination and to build a “leading credit model”. He said the online small business lending market is growing at a faster pace than it did in the US at a similar stage in […]
